Market Report: Man Group’s Chinese double trouble

Hedge fund manager Man Group was hit with a double whammy from China today.

Not only was it one of the many casualties from another sell-off triggered by yet more downbeat data from the world’s second-largest economy, it also had to contend with news that the chair of its China unit, Li Yifei, had been taken into custody as part of a probe into the recent market turmoil.

It was among the biggest fallers on the FTSE 250, plunging 9p or 5.6%, to 152.1p.

Things weren’t looking much better on London’s blue-chip index, down 154.51 points to 6093.43, with no stocks in the black after figures showed China’s manufacturing sector is in the midst of its worst slump for several years.

China’s official Purchasing Managers Index fell to 49.7 from 50 in August — the worst reading for three years — while the private Caixin/Markit China Manufacturing PMI came in at 47.3, its lowest since 2009.

“Traders remain unnerved about the prospects for growth in China, something that was reinforced by contraction in the manufacturing PMI number,” said Trustnet Direct’s Tony Cross. “Thinner volumes after the weekend break may well serve to exacerbate London volatility in the short term,” he added.